supplementary financial information sampo group january ... · sampo plc nordea life p&c 4,699...
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Supplementary Financial Information Sampo Group January–September 2013
Disclaimer
This presentation may contain forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Sampo believes that the expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors.
Important factors that may cause such a difference for Sampo include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate and (iii) developments in capital markets.
This presentation does not imply that Sampo has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.
2
Comparison figures 2012
Due to the adoption of the revised accounting standard IAS 19 on Employee benefits, the comparison figures for 2012 have been restated and differ from the earlier published figures. The changes concern directly the P&C insurance segment but are consequently reflected in the consolidated items as well.
3
KEY FINANCIAL FIGURES
Sampo Group results
1,183 1,228
1,011 1,055
0
200
400
600
800
1,000
1,200
1,400
1-9/2012 1-9/2013
EURm
Profit before taxes and net profit
Pre-tax profit Net profit
387 369
150
322
370
444
370
439
370
455
403
0
50
100
150
200
250
300
350
400
450
500EURm
Profit before taxes by quarters
5
Sampo Group profit before taxes
660
98
466
-40
1,183
700
103
477
-49
1,228
-1000
100200300400500600700800900
1,0001,1001,2001,3001,400
If P&C Mandatum Life Nordea Holding Sampo Group
EURm
1-9/2012 1-9/2013
*) excl. Nordea
*)
6
Profit before taxes and comprehensive income
66
0
70
0
98
10
3
46
6
47
7
1,1
83
1,2
28
76
3
58
6
21
8
13
7
49
2
43
8
1,4
25
1,1
12
0
200
400
600
800
1,000
1,200
1,400
1,600Profit before taxes
Comprehensive income
If P&C Mandatum Life Nordea Sampo Group
EURm
7
Earnings per share
1.81 1.88
2.55
1.99
0.000.200.400.600.801.001.201.401.601.802.002.202.402.60
1-9/2012 1-9/2013
EUR
EPS and Comprehensive result EPS
EPS (reported) EPS (comp. result)
0.57
0.67
0.56
0.71
0.57
0.70
0.62
0.00
0.20
0.40
0.60
0.80
Q1/12Q2/12Q3/12Q4/12Q1/13Q2/13Q3/13
EUR
Reported EPS by quarter
8
Sampo Group net asset value per share
5.97
7.67 9.21
13.49
8.28
14.63
17.79
14.05
17.38
20.53
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
22.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 Sept.2013
EUR
9
Net asset value per segment, 30 September 2013
3,528
1,191
7,701
-923
11,497
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
P&C insurance Life insurance Nordea Sampo plc &eliminations
Sampo Group
EURm
Nordea book value in Group accounts EUR 6,781 million + valuation difference EUR 919 million
Incl. Topdanmark valuation difference EUR 227 million
10
24
.1%
22
.0%
19
.2%
-0.8
%
53
.2%
39
.8%
12
.4%
38
.1%
26
.0%
26
.0%
39
.0%
30
.0%
9.1
%
-68
.8%
97
.6%
36
.2%
-11
.7%
28
.5%
15
.7%
19
.5%
28
.4%
22
.6%
52
.6%
-32
.4%
55
.7%
21
.8%
7.7
%
19
.5%
14
.6%
21
.2%
-70%-60%-50%-40%-30%-20%-10%
0%10%20%30%40%50%60%70%80%90%
100%P&C insurance
Life insurance
Sampo Group
Return on equity in Sampo Group’s business areas
Target P&C and Life >17.5%
11
Fair value reserve development by segment
EURm 9/2013 12/2012 12/2011 12/2010
P&C insurance 448.9 363.7 139.4 315.1
Life insurance 447.8 391.4 214.1 436.4
Holding 2.5 0.3 1.7 -0.4
Sampo Group*) 893.0
749.4 355.4 736.4
*) Eliminations included and figures after tax
12
Fair value reserve by segment and asset class, 30 September 2013
EURm Fixed
income Equity
Derivat. held for trading
Deferred taxes
FVR net
P&C insurance 189.6 388.7 - -129.4 448.9
Life insurance 110.6 482.6 0.0 -145.3 447.8
Holding 5.6 -2.2 - -0.8 2.5
Sampo Group *) 298.9 869.9 0.0 -275.7 893.0
*) Eliminations included and figures after tax
13
CAPITAL POSITION
Group capital and minimum requirement, 30 September 2013
10,332
1,274 2,951
8,655
860 860 225 225
3,593 2,712
21
21
0
2,000
4,000
6,000
8,000
10,000
12,000
Sampo plc
Nordea
Life
P&C
4,699 3,819
Group solvency ratio 184% Basel II 219%
* incl. Basel II transition rules
*
EURm
15
Group economic capital and solvency, 30 September 2013
1,727
1,123
3,355
-825
5,380
8,655
355 381
9,391
-500
500
1,500
2,500
3,500
4,500
5,500
6,500
7,500
8,500
9,500
If P&C MandatumLife
Nordea Diversific. Group EC Adj. Groupsolv. capital
*) Liability side adjustments, which equal discount effect less risk margin **) Finnish equalisation provisions
EURm
*) **)
16
P&C insurance economic capital split by risk type, 30 September 2013
577
1,172
155 220 -507 110
1,727
3,742
4,059
0
1,000
2,000
3,000
4,000
5,000
Insu
ran
ce r
isk
Mar
ket
ris
k
Cre
dit
ris
kca
ptu
red
by
stan
dar
dfo
rmu
la
Op
erat
. ris
k
Div
ersi
fic.
To
pd
anm
ark
To
tal
Ad
j. so
lv. c
apit
al
EURm
*) Liability side adjustments, which equal discount effect less risk margin
*) 317
17
Life insurance economic capital split by risk type, 30 September 2013
374
902
123 20
-296
1,123
1,448
37
1,485
0
500
1,000
1,500
Insurancerisk
Market risk Credit risk Operationalrisk
Diversific. Total Adj. solv.capital
EURm
*) Liability side adjustment
*
18
Sampo Group economic capital September 2011 – September 2013
1,5
38
1,0
31
2,5
07
4,3
94
1,4
60
1,0
46
2,5
09
4,3
74
1,6
28
1,0
88
2,5
46
4,6
29
1,6
03
1,0
59
2,5
72
4,6
19
1,6
76
1,0
73
2,5
69
4,6
78
1,6
13
1,1
10
2,4
56
4,5
60
1,6
45
1,1
26
3,4
50
5,3
89
1,5
67
1,1
23
3,3
98
5,2
76
1,7
27
1,1
23
3,3
55
5,3
80
0
1,000
2,000
3,000
4,000
5,000
6,000
If P&C Mandatum Life Sampo plc (Nordea) Sampo Group (incl.diversif. effect)
EURm 9/2011 12/2011 3/2012 6/2012 9/2012 12/2012 3/2013 6/2013 9/2013
19
Sampo Group economic capital split by risk type, 30 September 2013
Market risk 34%
Credit risk 44%
Insurance risk 11%
Operational risk 11%
20
INVESTMENTS
Sampo Group investment allocation, 30 September 2013
Investments of Sampo plc,
Mandatum Life and If P&C
Long-term fixed income
69% Money market 10%
Equities 16%
Real estate 2%
Other 3%
Total EUR 17.7 billion
22
Investment return January–September 2013
Yield % EURm
ML If Total ML If Total
Fixed income 2.1% 2.1% 2.0% 76
(15) 214 (7)
287
Equities 13.3% 19.0% 15.8% 200 (53) 219 (36) 425
Other 6.8% 6.1% 6.6% 50 (0)
8 58
Total (incl. FX net result) *)
5.2% 3.7% 4.1% 288 428 718
*) incl. FX result and therefore differs from the sum of asset classes (realized sales gains and losses in parenthesis)
23
Sampo Group fixed income investment allocation, 30 September 2013
Europe money market
8%
Scandinavia money market
4%
Europe 24%
Scandinavia 61%
US 2%
By geography
Money market 12%
Banks 19%
Covered bonds 28%
Public sector 13%
Corporate 28%
By sector
Total EUR 13.9 billion
24
Sampo Group covered bonds and bank fixed income investments, 30 September 2013
25
Covered bonds
Money market
Long-term senior debt
Long-term subord. debt Total %
Sweden 2,948 385 1,045 119 4,497 54.5%
Finland 231 1,233 173 17 1,654 20.0%
Norway 481 578 107 1,166 14.1%
Denmark 90 124 114 328 4.0%
the United States 126 91 9 227 2.7%
the Netherlands 109 109 1.3%
France 60 25 19 104 1.3%
Switzerland 31 11 42 0.5%
Germany 34 34 0.4%
Austria 33 1 34 0.4%
Estonia 24 24 0.3%
Luxembourg 11 11 0.1%
Belgium 5 5 10 0.1%
Iceland 9 9 0.1%
Jersey 5 5 0.1%
Grand Total 3,854 1,767 2,224 408 8,253 100%
Sampo Group debt investments in public sector, 30 September 2013
EURm
Government
Government guaranteed
Public sector, other
Total
Sweden 58 540 598
the Netherlands 447 447
France 325 325
Germany 100 74 174
Norway 25 130 155
Finland 11 50 78 140
Denmark 37 37
Total 941 187 749 1,876
26
Sampo Group equity investment allocation by geography, 30 September 2013
Scandinavia 32%
Finland 24%
Western Europe 15%
North America 13%
Far East 10%
East Europe 4%
Latin America 2% Japan 0%
Total EUR 2.9 billion
27
Sampo Group bank investment allocation by country, 30 September 2013
Sweden 54%
Finland 20%
Norway 14%
Denmark 4%
United States 3%
Netherlands 1%
France 1% Other
2%
Total EUR 8.3 billion
28
Sensitivity of Group investments to market risks on 30 September 2013
EURm If P&C Mandatum
Life Sampo plc
Sampo Group
Equities -10%
+10%
-131
131
-157
157
-2
2
-290
290
Interest rates -100 bps
+100 bps
153
-148
11
-27
2
-2
166
-176
Other -10%
+10%
-12
12
-76
76
-1
1
-89
89
Local currency -5%
+5%
0
0
26
-26
2
-2
-
-
The changes of interest rates have a strong effect on the reinvestment risk of the insurance companies. The sensitivities include the effects of derivative positions, but do not capture indirect effects, like the impact of the changes of the discount rates in the value in force. All sensitivities are before taxes. The scenario definitions assume an uniform movement of the whole underlying market.
29
P&C INSURANCE
P&C insurance profit before taxes and comprehensive income
660 700
505 548
763
586
0
100
200
300
400
500
600
700
800
900
1-9/2012 1-9/2013
Profit before taxes Profit for the period Comprehensive incomeEURm
31
72
.7
72
.5
73
.4
74
.4
74
.6
75
.6
74
.7
72
.0
72
.2
71
.5
17
.8
17
.4
17
.2
17
.4
17
.6
17
.2
17
.3
16
.9
16
.7
16
.8
90.5 89.9 90.6 91.8 92.1 92.8 92.0 88.9 88.9 88.2
0
20
40
60
80
100%
Expense ratio
Claims ratio
Long-term target <95%
66
.2
65
.9
66
.9
68
.1
68
.0
69
.1
68
.4
65
.9
66
.1
65
.5
24
.3
24
.0
23
.7
23
.7
24
.1
23
.7
23
.5
23
.0
22
.8
22
.8
90.5 89.9 90.6 91.8 92.1 92.8 92.0 88.9 88.9 88.2
0
20
40
60
80
100%
Cost ratio
Risk ratio
Long-term target <95%
P&C insurance combined ratio development
32
P&C insurance GWP growth by business area and by country*, 1-9/2013 vs. 1-9/2012
-0.4
6.4
2.3
1.5
1.5
-3.1
2.0
4.7
2.9
-4.0 -2.0 0.0 2.0 4.0 6.0 8.0
Denmark
Finland
Norway
Sweden
Baltic
Industrial
Commercial
Private
If total
%
*excluding currency effects 33
P&C insurance breakdown of gross written premiums, 1-9/2013
2,032
1,143
558 89
By business area
Private
Commercial
Industrial
Baltic
1,348
1,195
858
331 89
By country
Norway
Sweden
Finland
Denmark
Baltic
Total EUR 3,845 million
34
P&C insurance technical result by business area and by country, 1-9/2013
272
122
33 12 14
453
220
112
51 45
12 14
453
0
50
100
150
200
250
300
350
400
450
500
EURm
(264)
(19)
(22)
(119)
By business area By country
(14)
(438)
(255)
(80)
(75)
(-8)
(14) (22)
(438)
35
-330
-149
69 70 180 170 199
100 71 108 103 101 150 156 243 228 225 187 190
-305
-176
-31
71
142 47
185 327 258
113
-8
88
252 145
208 241 317
267 389
-325
37
142
322
217
384
427
329
221
95
189
402 301
451 469
454
-750
-500
-250
0
250
500
750
3/0
9
6/0
9
9/0
9
12
/09
3/1
0
6/1
0
9/1
0
12
/10
3/1
1
6/1
1
9/1
1
12
/11
3/1
2
6/1
2
9/1
2
12
/12
3/1
3
6/1
3
9/1
3
Equities
Bonds
Money market
7%
Long-term fixed income
81%
Equities 11%
Private equity 0.2%
Real estate 1%
If P&C investments, 30 September 2013 AFS investments
unrealized gains before taxes
Duration 1.3 years Average maturity 2.3 years Fixed income running yield 3.0%
EURm
Investment allocation Total EUR 12.0 bn
36
579
-635
543
5.8%
4.4%
2.6%
-3.1%
12.4%
7.4%
1.8%
6.1%
3.7%
-4%
-2%
1%
4%
6%
9%
11%
14%
2005 2006 2007 2008 2009 2010 2011 2012 1-9/2013
If P&C mark-to-market investment returns Fixed income running yield Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 % 3.9 3.8 3.6 3.6 3.4 3.1 3.0
37
If P&C solvency capital and solvency ratio
EURm Sept. 2013
Dec 2012
Shareholders equity 3,300 2,804
Subordinated notes 348 323
Deferred tax assets and liabilities, net
353 324
Solvency capital 4,002 3,359
88%
74%
71%
66%
77%
79%
72%
75%
88%
50%
55%
60%
65%
70%
75%
80%
85%
90%Solvency ratio, %
Solvency ratio, (IFRS) % = + solvency capital + premiums earned from 12 months
x 100%
38
P&C insurance results by quarter
EURm Q3/13 Q2/13 Q1/13 Q4/12 Q3/12 Q2/12 Q1/12 Q4/11 Q3/11
Premiums earned 1,139 1,140 1,115 1,121 1,121 1,054 1,066 1,045 1,029
Claims incurred -802 -800 -824 -801 -809 -729 -802 -759 -771
Operating expenses -191 -188 -190 -198 -189 -177 -175 -184 -178
Other technical income and expenses
0 0 1 0 -1 1 2 0 1
Allocated investment return transferred from the non-technical account
16 17 20 14 21 25 29 21 26
Technical result 161 170 122 136 143 175 120 124 106
Investment result 89 115 102 84 93 107 113 78 -23
Allocated investment return transferred to the technical account
-30 -31 -34 -27 -35 -40 -44 -35 -39
Other income and expenses 6 15 14 11 7 12 9 4 0
Operating result 227 270 204 205 208 254 198 171 43
39
P&C insurance key figures by quarter
Q3/13 Q2/13 Q1/13 Q4/12 Q3/12
Risk ratio, % 64.7 64.2 67.7 65.5 66.2
Cost ratio, % 22.5 22.5 23.2 23.6 22.9
Expense ratio, % 16.8 16.5 17.0 17.6 16.8
Combined ratio, % 87.2 86.7 90.9 89.1 89.0
Insurance margin, % 14.2 14.8 10.9 12.1 12.8
40
P&C insurance key figures by business area, Q3/2013
Private Commercial Industrial Baltic
GWP, EURm 633 (620) 179 (193) 96 (93) 28 (27)
NPE, EURm 657 (635) 334 (340) 113 (115) 29 (28)
Technical result, EURm 91 (83) 43 (48) 20 (7) 6 (3)
Risk ratio, % 65.5 (66.6) 63.7 (63.4) 65.5 (74.1) 52.5 (57.4)
Cost ratio, % 22.5 (22.4) 24.2 (23.6) 18.2 (20.9) 30.1 (32.1)
Combined ratio, % 87.9 (89.0) 87.9 (87.0) 83.7 (95.0) 82.6 (89.5)
Insurance margin, % 13.8 (13.1) 13.0 (14.4) 17.3 (6.4) 18.6 (11.9)
41
P&C insurance key figures by country, Q3/2013
Norway Sweden Finland Denmark
GWP, EURm 313 (333) 343 (333) 160 (147) 93 (92)
NPE, EURm 400 (416) 348 (346) 255 (230) 100 (98)
Technical result, EURm 77 (81) 22 (19) 37 (30) 18 (9)
Risk ratio, % 60.3 (61.6) 75.7 (74.7) 60.2 (63.6) 58.2 (64.3)
Cost ratio, % 22.6 (21.3) 21.5 (23.4) 23.0 (21.6) 24.8 (27.8)
Combined ratio, % 82.9 (82.9) 97.2 (98.1) 83.3 (85.1) 83.1 (92.2)
Insurance margin, % 19.3 (19.7) 6.2 (5.6) 14.5 (12.9) 17.8 (8.9)
42
LIFE INSURANCE
Life insurance profit before taxes and comprehensive income
98 103
81 81
218
137
0
20
40
60
80
100
120
140
160
180
200
220
1-9/2012 1-9/2013
EURm Profit before taxes Profit for the period Comprehensive income
44
EURm 1-9/2013 1-9/2012
Net investment income 387.8 455.3
- Transferred to expense result -14.8 -12.6
- Return on unit-linked policies -168.8 -218.3
- Return on with-profit policies* -123.2 -133.9
INVESTMENT RESULT 81.0 90.3
EXPENSE RESULT** 7.3 2.9
RISK RESULT 16.6 13.9
OTHERS*** -1.5 -8.9
PROFIT BEFORE TAXES 103.4 98.2
Change in the market value of investments 74.7 181.9
PROFIT AT MARKET VALUES 178.1 280.1
Total expense ratio, % 105.8 112.7(2012)
Incl. kick backs, % 87.1 93.4 (2012)
Sampo Group life insurance profit by components
* Includes guaranteed interest, bonuses and change in the reserves of the above items ** Result of unit-linked business EURm 6.5 (includes only Finnish operations) *** Includes operating expenses for Innova Pension and Personnel Fund Services
Mandatum Life, Group Life expense ratio
45
Premiums written*, total EUR 769m Insurance savings, total EUR 7,989m
*) Direct insurance
228
91 329
19 55
67
2
Unit-linked life Unit-linked pension Unit-linked capital redemptionUnit-linked Baltic Other life Other pensionOther capital redemption Other Baltic
1,446
1,393
1,405
138
239
3,503
4 18
Mandatum Life breakdown of unit-linked and with-profit business
UL EUR 4,243m
With-profit EUR 3,745m
UL EUR 647m
With-profit EUR 122m
Focus area
Technical Reserves, EURm
4,652 4,626 4,738 4,695 4,621 4,487 4,431 4,410 4,249 4,071 3,981
607 884 1,262 1,752 2,071 1,637 2,359 3,124 3,054 3,833 4,386
0
2,000
4,000
6,000
8,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sept. 30,2013Guaranteed rate Unit-linked
46
Mandatum Life’s gross written premiums by policy type in Finland
331
556 459
520 647
158
229
122
134
122
0
100
200
300
400
500
600
700
800
900
1-9/2009 1-9/2010 1-9/2011 1-9/2012 1-9/2013
Unit-linked With-profitEURm
47
Mandatum Life’s new premiums written by distribution channel in Finland
134 207
285 23
20
17 225
212
259
0
100
200
300
400
500
600
1-9/2011 1-9/2012 1-9/2013
Danske Bank Others Mandatum LifeEURm
48
17.9 19.5 20.4 19.8 19.3
24.8 24.1 24.9 24.5
19.6
25.5
20.8
25.2
22.4 21.5
27.9 28.2 26.8 26.2
19.7
0
5
10
15
20
25
30%
All products
Unit-linked
Market Position in Finland
Market shares
44.7
Group pension
19.7
Unit-linked
43.8
Corporates
13.6
Private customers
Market shares of premiums written 30 Sept. 2013
49
Mandatum Life investments, 30 September 2013 AFS investments
Unrealized gains before taxes
Duration 1.7 years Average maturity 2.0 years Fixed income running yield 4.1%
EURm
Investment allocation Total EUR 5.4 bn
Money market
14%
Long-term fixed income
43%
Equities 29%
Private equity
4%
Real estate 4%
Other 6%
50
-63 20 120 130 164 155 167 136 131 125 70 76 122 112 139 149 127 105 111
-291
-126
61 142 253 188
318 450 430 364
131 206 353
242 326 369 441
375 483
-353
-106
181
272
417 343
485
586 560 489
201 282
475
354
465 518
568
480
593
-1,000
-500
0
500
1,000
1,500
3/0
9
6/0
9
9/0
9
12
/09
3/1
0
6/1
0
9/1
0
12
/10
3/1
1
6/1
1
9/1
1
12
/11
3/1
2
6/1
2
9/1
2
12
/12
3/1
3
6/1
3
9/1
3
Equities
Bonds
Mandatum Life mark-to-market investment returns Fixed income running yield Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13
% 5.4 5.3 5.3 5.2 4.8 4.4 4.2 4.1
12.0%
9.7%
5.0%
-7.8%
16.8%
11.1%
-1.4%
9.4%
5.2%
-10%
-5%
0%
5%
10%
15%
20%
2005 2006 2007 2008 2009 2010 2011 2012 1-9/2013
51
EURm Sept. 2013
Dec 2012
Capital and reserves 1,178 1,140
Dividend payment 0 0
Subordinated capital 100 100
Unrealized gains 20 19
Deferred taxes from Fair Value Reserve 145 127
Deferred taxes on profit brought forward 12 16
Other items -9 -11
Solvency Capital 1,446 1,391
Technical provisions on own account 8,363 7,901
- 75% of t/p in unit-linked insurance -3,289 -2,875
Technical provisions 5,074 5,026
17.7%
21.3%
20.1%
16.5%
7.9%
18.5%
25.8%
20.9%
27.7%
28.5%
0%
5%
10%
15%
20%
25%
30% Solvency ratio
Solvency ratio, % of technical provision, (IFRS) =
+ solvency capital + liabilities for insurance and investment contracts - reinsurers’ share of insurance liabilities - 75% x technical provisions relating to unit-linked insurance
x 100%
Mandatum Life Group solvency and solvency ratio
52
HOLDING
Holding segment profit before taxes
46
-24 -61
466 426
27
-27 -49
477
428
-100
-50
0
50
100
150
200
250
300
350
400
450
500
Income Operating costs Finance costs Nordea Profit beforetaxes
EURm 1-9/2012 1-9/2013
54
Sampo plc balance sheet, 30 September 2013
Assets total, EURm 8,568 Liabilities total, EURm 8,568
Liquidity 166 CPs issued 298
Investment assets 30 LT senior debt 1,716
Real estate 6 Private placements 158
Private equity 6 Bonds issued 1,557
Other investments 18 Pension insurance loans 0
Subordinated loans 348 Other liabilities 165
Equity holdings 7,928 Subordinated debt 0
Subsidiaries (If, ML) 2,370 Capital 6,390
Associated (Nordea) 5,557 Undistributable capital 98
Other assets 96 Distributable capital 6,292
55
Net debt in Sampo plc
EURm 2013 2012 2011
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
+ Gross debt 2,013 2,090 2,108 2,162 2,306 2,300 2,534 2,329 2,321 1,890 1,910
Bonds & Notes 1,716 1,783 1,723 1,710 1,713 1,697 1,932 1,677 1,667 1,341 1,346
Domestic CP´s 298 307 385 451 593 603 602 652 653 549 563
– Interest bearing assets 514 521 1,215 1,048 588 585 1,277 1,121 585 300 658
Liquidity buffer 166 200 984 823 372 368 1,060 898 472 186 544
Subordinated loans
348 321 231 225 216 217 217 223 113 114 114
Net debt 1,499 1,570 893 1,113 1,717 1,715 1,257 1,208 1,736 1,590 1,252
56
Sampo plc debt instruments, 30 September 2013
Key Credit Metrics
Instrument & Principal Coupon Swap Effective Rate Maturity
Senior Bond 300 EURm (EMTN) 3,2500 % ---- 3,0377% 03.10.2014
Senior Bond 2,000 SEKm (EMTN) Stibor3M+ 0,75% --- 1,9680% 28.05.2015
Senior Bond 300 EURm (EMTN) 4,2500 % Euribor3M + 1,4727% 1,6917% 22.02.2016
Senior Bond 500 EURm (EMTN) 4,2500% Euribor3M + 2,7910% 3,0160% 27.02.2017
Senior Bond 2,000 SEKm (EMTN) Stibor3M + 1,45% --- 2,6680% 29.05.2018
CP’s issued 298 EURm Euribor + Margin 0,7800% 3M
Public debt 1,855 EURm 2,2750%
Private placements 158 EURm 2,3965%
Total 2,013 EURm 2,2844%
Double Leverage (Equity Holdings / Capital) 124%
Equity EURm 6,390
Gross Debt to Equity 31.5%
Financial Leverage 24.0% 57
NORDEA
Nordea’s book value on Sampo Group consolidated balance sheet, 30 September 2013 Nordea in Sampo Group’s B/S EURm
Acquisition price 5,557.3
Retained earnings 1,156.0
Accumulated other changes in Nordea’s equity -25.9
Share of Nordea’s net profit 497.9
Amortisation -26.5
Deferred tax 5.8
Dividends 292.5
Share of Nordea’s other comprehensive income -66.7
Share of Nordea’s other changes in equity -51.6
Share of Nordea’s goodwill change 27.6
Total 6,781.4
Shares 860,440,497 EUR 7.88/share
November 4, 2013
59
Nordea share price and book value EUR
-> October 22, 2013 60
5.0
6.0
7.0
8.0
9.0
10.0
11.0
Share price, lhs Book value, lhs
Sampo’s Nordea holding valuation differences 8
14
27
9 5
81
1,0
87
81
2
40
0
-81
7
-1,1
12
-35
2
-54
3
10
0
-46
1
1,0
84
73
3
91
9
-1,600
-1,200
-800
-400
0
400
800
1,200
EURm
Valuation differences = Nordea MTM - consolidation value 61
OUTLOOK
Sampo Group’s outlook for the rest of 2013
Sampo Group’s business areas are expected to report good operating results for 2013.
However, the mark-to-market results are, particularly in life insurance, highly dependent on capital market developments. The low interest rate level also creates a challenging environment for reinvestment in fixed income assets.
The P&C insurance operations are expected to reach their long-term combined ratio target of below 95 per cent in 2013 and achieve a combined ratio of 88–90 per cent.
Nordea’s contribution to the Group’s profit is expected to be significant.
63
APPENDIX
Structure
MARKET POSITION
STRATEGY
INVESTMENT ASSETS
RETURN TARGET
21.2%
• Parent company for the Group • Market Cap ~ EUR 18 bn*
Nordea
• The largest pan-Nordic
Financial Services group
• Profit oriented
• Cost, Risk & Capital
~ EUR 626 bn B/S*
• TSR in the top of quartile of European peer group • RoE above 15%
Sampo plc
• Unit-linked products & Wealth Management
• Leading life & pension insurer in Finland, with Baltic operations
~ EUR 5.4 bn*
Mandatum Life
• RoE above 17.5%
• The largest Nordic P&C insurer, second largest in the Baltics
• Underwriting focus • Pan-Nordic synergies
~ EUR 12.0 bn*
• RoE above 17.5% • CoR below 95%
Over 25%
*30 September 2013
65
Sampo’s P&C insurance operations are merged with If (2002). Following the transaction, Sampo owns 38 per cent of If’. If becomes fully owned by
Sampo (2004). Following
the transaction, Sampo has three core businesses: P&C insurance, banking and
long-term savings.
Sampo Insurance Company and Leonia merge into the Sampo-Leonia financial services group. The Group’s business areas are long-term savings (life insurance, asset management and mutual funds), banking, investment banking, and P&C insurance.
Mandatum Bank joins the Group, and the Group’s name is shortened to Sampo.
Sampo Group divests Sampo Bank Group to Danske Bank A/S. Following the transaction,
Sampo´s business areas are:
P&C insurance and
life insurance.
Sampo´s Nordea holding exceeds 20% and Nordea becomes an associated company.
2007 2004 2002 2001 2000 2010 2011
Sampo Group´s (If P&C´s) Topdanmark holding exceeds 23% and Topdanmark becomes If´s associated company.
2012
Sampo Group (If P&C) acquires Tryg´s Finnish business. If P&C signs a partnership agreement with Nordea.
Finland
Sampo Group has gone through several structural changes in its history. The timeline below outlines the major changes in Sampo Group during the 21st century.
History
2013
66
Sampo plc’s ownership structure, 31 Oct. 2013
* Entirely owned by the Finnish State
Solidium 14.16%*
Varma Mutual Pension 7.85%
Björn Wahlroos 2.10%
Kaleva Mutual Insurance 0.93%
Ilmarinen Mutual Pension 0.74%
Other domestic owners 17.47%
Foreign and nominee registeredowners 56.76%
67
Sampo Group staff
Sampo Group staff (full time equivalents)
30 September 2013 31 December 2012
P&C INSURANCE 6,246 6,205
Finland 1,834 1,730
Sweden 1,813 1,820
Norway 1,464 1,482
Denmark 530 551
Baltic and other countries 605 622
LIFE INSURANCE 524 561
Finland 410 442
Baltic countries 114 119
HOLDING 55 54
TOTAL SAMPO GROUP 6,825 6,820
68
P&C insurance - Market shares by country, %
Codan 22%
If 14%
BTA 12% Ergo
14%
Gjen-sidige
8%
Seesam 6%
Other 24%
0ryg 21%
Top- danmark
17%
Codan 13%
Alm. Brand 10%
Gjen-sidige
6%
If 6%
Other 26%
LF 30%
If 18%
TH/Codan 16%
Tryg 3%
Folksam 16%
Other 17%
Pohjola 29%
If 26%
Lähi-Tapiola
27%
Fennia 10%
Other 8% Gjen-
sidige 25%
If 25%
Tryg 15%
Sparebank1 11%
Other 24%
Norway Q2/2013
Denmark Q3/2012
Finland 2012 Sweden Q2/2013
Baltics Q3/2012
If 18%
Tryg 11%
Codan 9%
Gjensidige 9%
LF 9%
Top-danmark
5%
Pohjola 4%
Other 35%
Nordics 2012
Source: If/Tryg/SFF
(RSA)
(RSA)
(Pohjola) (RSA)
69
Tryg 2%
Vital Forsikring
23%
Storebrand Livforsikring
20%
KLP 33%
Nordea Liv 8%
Sparebank1 Livforsikring
4%
Gjensidige Forsikring
3%
If 0.3
Other 9%
Skandia 16%
SEB Trygg Liv 9%
Folksam 15%
Swedbank Försäkring
8% AMF Pension 11%
Avanza 4%
Nordea Liv 5%
LF 8%
Nordnet 2%
Alecta 7%
SHB 5%
SPP 5%
Danica 3% Other
2%
Life insurance - Market shares by country, %
Baltics 2012
Finland 2012
OP Life 22%
Mandatum Life 24%
Nordea 31%
Tapiola 9%
Fennia 2%
Aktia 3%
Other 9%
PFA Pension, 21%
Danica Pension,
17%
Nordea Pension,
14%
Sampension, 8%
SEB, 4%
Topdanmark, 3%
Other, 33%
Norway 2012
Denmark* 2011
Sweden* 2012
*Exposed to competition
Mandatum Life 11%
(DnB)
(Danske)
(Danske)
(Storebrand)
70